Coconut oil supply is estimated to increase due to higher production of nuts in Kerala and Tamil Nadu, Jose John, managing director of KPL Oil Mills, said on Wednesday. He said that demand for coconut oil is also weak with consumers staying away due to fear of adulteration. Adulteration of coconut oil is a big challenge for the industry with inedible substances like paraffin oil used in some reported cases. Coconut oil is used in household cooking in states like Kerala and Goa. It is also used in the bakery, hair oil and soap manufacturing industry. Out of the total production of nuts only 35% is utilized for copra & coconut oil production. India is the world's biggest buyer of vegetable oil, importing nearly 60% of its 16-17 million tonne annual consumption. \u201cThe price correction in coconut oil is due to customers staying away. Good rains in Southern India will help production and supply,\u201d John said. He was talking to reporters after launching rice bran oil .John added that lesser trans fat in rice bran oil is for the younger generation, which is more health conscious. KPL has over 75 years of expertise in the edible oil industry in India and exports oil to many countries including the US. Kerala consumes nearly one lakh tonnes as coconut oil, 2 lakh tonnes in hair oil industry and another one lakh tonnes is used for industrial purpose.